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AIB to offload property loans

Banks scramble to attract investors by selling their portfolios

Allied Irish Bank (AIB) has hired Morgan Stanley to advise on the possible sale of the former Educational Building Society’s (EBS) €800m investment property portfolio. AIB assumed ownership of the commercial real estate (CRE) loan portfolio when it merged with the EBS last year.

The move comes as banks jockey for position with the National Asset Management Agency (Nama) to attract international interest for Irish investment property loans.

It was reported by Reuters last week that Ulster Bank was gearing up to sell €1 billion of commercial property loans and had approached four agents about submitting proposals, citing the Nama Wine Lake blog.

Nama is also expected to start looking at selling loans in Ireland. It recently appointed two panels of loan-sale advisers for Europe and the US.

The European panel will be used for the sale of Irish loans, a Nama spokesman said. The panel includes international firms such